US-based digital mortgage-servicing platform Brace has raised an additional $15.7m in Series B funding round to spur business growth.
The funding round was led by Canvas Ventures, which was joined by major existing backers including Point72 Ventures and Crosslink Capital.
The latest investment round brings the total amount raised by the company to date to over $30m, following its Series A funding round in February last year.
Brace said it will use the fresh capital to expand its team, expand its suite of services offered, and boost future product initiatives.
Brace CEO Eric Rachmel said: “An enormous amount of value is locked inside legacy core systems, and in this past year the Covid-19 crisis has been a catalyst for speeding up innovation in servicing.”
“Canvas Ventures general partner Rebecca Lynn brings more than 20 years of fintech operating and investing experience and we look forward to partnering with her on our path to defining a market-leading servicing platform.”
Rebecca said: “Brace has been able to successfully navigate a highly complex and regulated environment while building trust with large, well-regarded mortgage servicers.
“We are proud to partner with a team that is steadfast with their laser focus approach to disruption through best-in-class software.”
Brace offers a modular, digital mortgage servicing platform that improves customer experiences and features a loss mitigation solution that reduces cost-to-service delinquent borrowers.
The loss mitigation solution offers a self-serve borrower platform with workflow and decisioning capabilities. This platform allows servicers to select the tools they want to deploy.
Moreover, last year, Brace secured a No-Action Letter (NAL) Template from the Consumer Financial Protection Bureau (CFPB). Now, Bruce customers can obtain their own NAL.
CFPB said: “Digitising the loss mitigation application process has the potential to improve a process that is experiencing an increase in loss mitigation requests from consumers due to the Covid-19 pandemic.”